New €4bn fund for SMEs on way

Up to €4bn in lending will be made available to small and medium businesses who will be given repayment holidays and up to 10 years to pay back loans.

The Government yesterday unveiled its long-awaited state bank initiative, which is supported by German funds as well as other investments from Europe.

Michael Noonan, the finance minister, said credit was the “lifeblood” for businesses and the new lending arrangements would be in place by the end of the year.